UK Industry to Chancellor: Don’t Leave Half our Economy Behind in the Race To Net Zero

A powerful coalition of UK organisations, led by ADE: Demand, has today issued an urgent plea to the Chancellor, demanding a lifeline for the backbone of British industry – the hundreds of businesses outside the planned hydrogen and carbon capture clusters. 

In a direct letter to the Treasury, the coalition of organisations including ADE: Demand, Regen, Electricity Storage Network, REA, Food and Drink Federation, Heat Pump Federation, Electrify Industry, Heat Pump Association and E3G warns that nearly 50% of the UK’s industrial emissions are from sites receiving no targeted support to decarbonise. These businesses are facing a “perfect storm” of the highest electricity prices in the western world and crippling grid connection delays. 

This policy blind spot actively threatens up to 1.4 million manufacturing and utility jobs and stalls vital private investment, risking “carbon leakage” where businesses and emissions are pushed abroad. 

The solution demanded is targeted electrification support in the upcoming budget to bridge the damaging price gap between electricity and gas. This would make the switch to clean, electric power the economically rational choice for British industry, unlocking billions in investment and securing the UK’s competitive edge. 

Sarah Honan, Head of ADE: Demand, said: 

“Right now, we are writing off half of our industrial economy. The government’s current plans leave thousands of vital businesses – and hundreds of thousands of jobs – with no viable path to decarbonisation. We are telling the Chancellor that 50% of the UK’s industrial emissions cannot be an afterthought. We need a powerful price signal to unleash this investment. The Chancellor needs to back these businesses, protect British jobs and accelerate our net zero goal.” 

Providing a clear route to electrification for these dispersed industrial sites is essential for securing green growth in every region of the UK and building a truly resilient, net zero economy. 

Read the full letter below.